Lloyd’s, the specialist insurance and reinsurance market, has published a number of ways the insurance industry could fast-track global economic and societal recovery from the far-reaching impacts of Covid-19.
These solutions include three open source frameworks, that aim to “help build future resilience through innovative partnerships and products together with a Centre of Excellence to better understand, model and provide insurance for systemic catastrophic events”.
The solutions and frameworks, developed in conjunction with our UK and Global Advisory Groups, are detailed in Lloyd’s ‘Supporting global recovery and resilience for customers and economies: the insurance response to Covid-19’ Report published today (1 July).
Following interviews with executives and experts across key global industries, it said the proposals seek to address short, medium and long-term challenges customers face as they begin to recover and reopen.
The proposals include solutions for the reopening of businesses against the threat of further waves of Covid-19, building greater resilience across global supply chains as well as the digital economy, and preparation and protection for the next systemic catastrophic event.
To address the many complex challenges ahead, the report sets out three proposed ‘open source’ frameworks that are freely available for application around the world, two of which require government and (re)insurance industry partnerships.
Lloyds said that if implemented, these three frameworks could provide customer protection for further waves of Covid-19 (ReStart and Recover Re) and other future pandemics, as well as strengthening societal resilience against future systemic catastrophic events (Black Swan Re).
Alongside developing and sharing these frameworks, Lloyd’s is developing a Centre of Excellence supported by up to £15m in seed capital investment. The Centre will build resources and capability to better “understand, model and create products that better protect customers against systemic risks, including pandemics”.
Lloyd’s chairman, Bruce Carnegie-Brown, said: “The purpose of insurance is to help businesses and communities manage the risks they face, enable them to recover quickly from disasters by paying claims, and provide the security that allows them to innovate, develop and drive economic growth.
“Covid-19 has demonstrated that there is much more we can do to support our customers by providing protection for the changing risks they face. Some of these risks are of a scale that require partnership with governments globally and this report identifies ways in which the insurance industry could work with governments to share risk and create a braver, more resilient world.”
The full report can be found here